Sorry, Danna, but it's "The garment is free of defects."
'free of' refers to the state or condition of something.
'free from' has the sense of separation/removal/release from.
Think of it this way:
1. A man has a high-pressure job, with the burden of heavy responsibility.
He decides to take a holiday, so that he is away and free from all the stress.
After a few days, he is relaxed and feels free of all the worries of everyday life.
2. Damp affects many homes. You can make your home free from damp forever if you buy my miracle product, DAMP-ALL-GONE.
Afterwards, you have the satisfaction of knowing that your home is free of damp.
3. A company manufactures TVs. Defects in these can creep in during the manufacturing process, and these are found during the quality control inspection. These defects are corrected, so that they are free from the defects that are part and parcel of an intricate manufacturing process.
The company then guarantees that all its products leave its factory free of defects.